Philippines to avoid recession this year-c.bank

MANILA, June 7 - The Philippine economy, which contracted at its fastest pace in two decades in the first quarter, will not slip into recession this year, central bank Governor Amando Tetangco said at the weekend.

Tetangco said the economy was still supported by strong remittances from overseas Filipinos and a sustained deceleration in inflation would boost domestic consumption, a major driver of growth.

"At this time, (there will be) no recession," Tetangco told reporters when asked if the country would likely suffer the same fate as neighbours Japan, Singapore, Hong Kong, Thailand and Taiwan, pushed into recession by the worst global economic crisis in decades.

Tetangco echoed comments by the head of policy planning at the National Economic Development Authority who said on Tuesday the economy was certain to post growth in the second quarter on the back of increased state spending but would likely miss the government's full year growth goal of 3.1-4.1 percent.